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The Behavior Of Prices As A Response To Structural Changes - The Role Of The Economic Transmission Mechanisms In Explaining The Observed Behavior

Author

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  • Andrei Silviu DOSPINESCU

    () (CISE, NISE, Romanian Academy)

Abstract

The paper analyzes the impact of structural variables on prices by building a model based on a system of difference equations. The main contribution of the paper is the formulation and testing of a hypothesis regarding the relation between the changes in the trajectories of prices as a result of the changes in the structural variables and the pattern of the economic transmission mechanisms. The hypothesis was verified, indicating that there are unique characteristics of the transmission mechanisms and of the relations between them that differentiate the high volatility behavior of prices from the low volatility behavior.

Suggested Citation

  • Andrei Silviu DOSPINESCU, 2012. "The Behavior Of Prices As A Response To Structural Changes - The Role Of The Economic Transmission Mechanisms In Explaining The Observed Behavior," Romanian Journal of Economics, Institute of National Economy, vol. 35(2(44)), pages 201-217, December.
  • Handle: RePEc:ine:journl:v:2:y:2012:i:44:p:201-217
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    References listed on IDEAS

    as
    1. Oded Galor & Omer Moav, 2002. "Natural Selection and the Origin of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1133-1191.
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    4. Miloslav VoŇ°vrda, 2001. "Bifurcation Routes And Economic Stability," Bulletin of the Czech Econometric Society, The Czech Econometric Society, vol. 8(14).
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    6. David N. Weil & Oded Galor, 1999. "From Malthusian Stagnation to Modern Growth," American Economic Review, American Economic Association, vol. 89(2), pages 150-154, May.
    7. Oded Galor, 2011. "Unified Growth Theory," Economics Books, Princeton University Press, edition 1, number 9477.
    8. Rand, David, 1978. "Exotic phenomena in games and duopoly models," Journal of Mathematical Economics, Elsevier, vol. 5(2), pages 173-184, September.
    9. Desai, Meghnad, 1973. "Growth cycles and inflation in a model of the class struggle," Journal of Economic Theory, Elsevier, vol. 6(6), pages 527-545, December.
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    More about this item

    Keywords

    transmission mechanisms; system of difference equations; Pearson and Spearman correlations; structural variables;

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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